ESG-Washing in the Mutual Funds Industry? From Information Asymmetry to Regulation

In this paper, we study the asymmetric information between asset managers and investors in the socially responsible investment (SRI) market. Specifically, we investigate the lack of transparency of the extra-financial information communicated by asset managers. Using a unique international panel dataset of approximately 1500 equity mutual funds, we provide empirical evidence that some asset managers portray themselves as socially responsible yet do not make tangible investment decisions. Furthermore, our results indicate that the financial performance of mutual funds is not related to asset managers’ signals but should be evaluated relatively using extra-financial ratings. In summary, our findings advocate for a unified regulation framework that constrains asset managers’ communication.

Firm’s survival, rating and efficiency: new empirical evidence

Purpose The purpose of this paper is to investigate the determinants of firms’ survival during crisis in the Italian automotive value chain. Design/methodology/approach The authors propose a survival analysis, based on a dichotomic model, in which supply chain features, technical efficiency (TE) and ratings are included as explanatory variables with other controls. Findings TE and financial health positively influence survival. Some supply chain variables are significant such as direct supply, geographical location and outsourcing level, whereas the proximity to the national carmaker is insignificant. Research limitations/implications The main limitation of the study is the lack of qualitative data related to supply management practice in the automotive industry. Originality/value The study combine supply chain aspects with firms’ survival, TE and financial ratings.